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Case
| HBS Case Collection
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2011
(Revised from original 2005 version)
Haier's U.S. Refrigerator Strategy
by
Pankaj Ghemawat, Thomas M. Hout and Jordan I. Siegel
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Abstract
Haier, the first Chinese consumer durable brand in the United States, succeeded in the compact refrigerator, freezer, and air conditioner markets and then built a U.S. factory to enter the full-size market. Issues include the value of a local entrepreneur to the Asian manufacturer entering the United States; brand building and price positioning; the sourcing location decision trade-off between production costs and logistics costs; the role of change in the U.S. appliance distribution channels; global and regional competitive analysis; the response of U.S. competitors to the global sourcing evolution; and the time horizons of Chinese company management.
Keywords: Factories, Labs, and Plants;
Global Strategy;
Growth and Development Strategy;
Brands and Branding;
Market Entry and Exit;
Competitive Strategy;
Consumer Products Industry;
China;
United States;
Citation:
Ghemawat, Pankaj, Thomas M. Hout, and Jordan I. Siegel. "Haier's U.S. Refrigerator Strategy." Harvard Business School Case 705-475, April 2011. (Revised from original February 2005 version.)